Petco stock suffers from Reddit-influenced volatility
Stocks are extending their retreat this week as the Fed meeting towers over Wall Street. Some of the names making notable moves today include sports betting stocks DraftKings Inc (NASDAQ: DKNG), Specialist dealers Petco Health and Wellness Company Inc (NASDAQ: WOOF), and crypto stocks MicroStrategy Incorporated (NASDAQ: MSTR). Here’s a quick look at what’s moving the shares of DKNG, WOOF and MST.
DraftKings hit with a devastating Hindenburg note
Hindenburg Research dropped a bomb this morning and announced a short position in DKNG. In her article, the notorious short seller demonstrated extensive research that DraftKings “systematically circumvented the law and took elaborate steps to disguise its black market dealings.” In response, DraftKings share is down 5.1% to trade at $ 48.03, and previously it was trading at $ 44.65.
Since a record high of $ 74.38 on March 22, the Purpose Acquisition Society (SPAC) Favorite of 2020 lost 20.7% in this quarter alone. However, keep an eye on how retailers are reacting to the Hindenburg report as a whopping 10.9% of DKNG’s total available float is sold short.
Petco stick on the Reddit roller coaster
The pet dealer with the adorable ticker was last traded 10% to $ 25.75. This comes after a 17.9% pop yesterday thanks to a lot of interest from Reddit forum WallStreetBets. WOOF rose 15.7% in 2021 even after today’s breather.
With the stock on the Short Sale Restricted List (SSR) today, options trading has exploded. With less than two hours in today’s trading, over 105,000 contracts have changed hands, 10 times the expected intraday amount and a volume gradation for the 100th percentile of its annual range. In the first place is the call from June 30th, during which new positions are opened.
MicroStrategy doubles bitcoin
MicroStrategy’s stock is up 5.3%, trading at $ 629.33 on its most recent review Software company filed a motion last night to sell up to $ 1 billion in stocks to buy more Bitcoin (BTC). The volatile cryptocurrency most recently up 3.5% to $ 41,217. Despite today’s uptrend, MSTR is running headfirst into its 80-day moving average, a trendline that has not been closed on a closing basis since mid-April.
A short squeeze could help the stock overcome this resistance. Short rates are up 12% over the last two reporting periods, and the 1.78 million shares sold represent 23.4% of MSTR’s total available free float.